NSW Strata Company Raised Special Levy Up to $400k?

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Christine Wu

5 November 2014
Our strata company (body corporate) raised special levy up to $400k to repair the building incl. balcony, roof, basement. The facility manager was pointed by Executive Committee and we had already paid him $8000, we still have $14000 to pay him and he got 3 quote and picked the cheapest one. This manager referred by one guy whom is the director of the strata managers from the our strata company. Some the owners have the questions why we can not review this project, but after the EGM, majority of the owners vote to agree the special levy, and most of them are the investors.

There are works will be done at level 7, level 8 terrace cost $70k, but the level 8 terrace is the roof of the owner below and it is not the common property on the strata plan map page.

And there are jobs such as pavers, painting were not the urgent job, our sinking fund has no money and last year all paid to the facility manager.

Now each owner face to pay the special levy from $15k to $25k Some owners can not afford to pay such big amount of the money.

What can we do now?

Sarah J

Well-Known Member
16 July 2014
Melbourne, Victoria
Hi Christine,

1. Look to the agreement owners have with the strata company. Does it say anything about repairs and where they should be paid out of? What does it say about raising the special levy.
2. Are you contesting the amount or are you simply having trouble paying the amount within the time frame?
3. If you're contesting the amount, on what grounds are you (and the other owners) contesting this amount?
4. If you're having trouble paying within the time frame, have you spoken with the strata company and told them of your financial difficulty? You should be able to come to some sort of payment arrangement.
5. Any repairs made over private property (i.e. not common areas) should be born by that owner unless otherwise stated on the agreement. However, the strata company may have power to recover payment from all or some owners, in which case, such owners will have a right to indemnity against the affected owner.

If you still cannot resolve your dispute, I suggest speaking with the NSW Fair Trading.